Malaysia Palm Oil production update (December 2008)

Malaysia's crude palm oil production rose marginally to 1.7 MMT in November. The palms are showing signs of biological stress.

A bigger carry-in stock and an increase in Palm Oil imports resulted in a record level of 2.3 MMT at the end of November.

However, the strong export performance and an expected reduction in Crude Palm Oil output in December should reduce carry-out stock to 1.5 MMT at the end of December.

Crude Palm Oil prices rose during the first half of December in response to the surge in overseas demand.